Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.FailureAcceptableSuccessfulAlternative 1Alternative 2Alternative 3Outcomes Probability Outcomes Probability Outcomes Probability500.40700.20850.400.201300.403250.400.402650.404100.20Alternative 1Alternative 2Alternative 380135Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest.Note: Do not round intermediate calculations. Round your answers to 3 decimal places.Coefficient ofVariationRank

Coefficient of variation shows the risk adjusted performance and is ratio of standard deviation to…

Possible outcomes for three investment alternatives and their probabilities of occurrence are given Failure Acceptable Successful Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability 50 0.40 .70 0.20 85 0.40 0.20 130 0.40 325 0.40 265 0.40 410 Alternative 1 Alternative 2 Alternative 3 80 135 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation 0.40 0.20 Rank

Possible outcomes for three investment alternatives and their probabilities of occurrence are given Failure Acceptable Successful Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability 50 0.40 .70 0.20 85 0.40 0.20 130 0.40 325 0.40 265 0.40 410 Alternative 1 Alternative 2 Alternative 3 80 135 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation 0.40 0.20 Rank

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 6P

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Similar questions

Possible outcomes for three Investment alternatives and their probabilities of occurrence are given next. \table, Alternative 1, Alternative 2, Alternative 3], [Failure, Outcomes, Probability Outcomes, Probability, Outcomes, Probability], [Acceptable 80, 0.20, 80, 0.40,90, 0.30], [Successful, 70, 0.20, 170,0.40, 290, 0.50]] Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round Intermeciate calculations. Round your answers to 3. decimal places, table[], \table[[Coefficient of], [Variation]], Rank], [Alternative 1... [Alternative 2,,], [Alternative 3..]]
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable Successful Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability 40 0.10 90 0.20 75 0.40 65 0.40 0.60 0.40 100 0.50 0.20 0.20 Alternative 1 Alternative 2 Alternative 3 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation 110 255 Rank 375 415
The expected rate of return of an investment ________. a. equals one of the possible rates of return for that investment b. equals the required rate of return for the investment c. is the mean value of the probability distribution of possible returns d. is the median value of the probability distribution of possible returns e. is the mode value of the probability distribution of possible returns
The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b. Between 0 and +2, inclusive c. Between 0 and +1, inclusive d. Between minus infinity and plus infinity
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable Successful Alternative 1 Alternative 2 Outcomes Probability Outcomes Probability 50 0.20 90 0.20 80 185 0.40 120 205 0.40 Alternative 1 Alternative 2 Alternative 3 Coefficient of Variation 0.40 0.40 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Rank Alternative 3 Outcomes Probability 8.20 0.60 0.20 65 320 420
If three investment alternatives all have some degree of risk and different expected returns, which of the following measures could best be used to rank the risk levels of the projects? Group of answer choices The standard deviation of returns The coefficient of correlation The coefficient of variation The net present value
The efficient frontier measures risk by using: Group of answer choices B. Correlation A. Risk-free rates D. Standard deviation C. Beta
What types of variables are commonly used in a CRA Z-score model? Define the ratios and explain how each is interpreted in assessing the probability of rescheduling?
Given the following probability distribution for assets X and Y, compute the expected rate of return, variance, standard deviation, and coefficient of variation for the two assets. Which asset seems to be a better investment?
Suppose the net present values of projects A and B show a distribution as follows. a) Compare the projects by expected value criteria?b) Compare the projects by standard deviation criteria?c) Evaluate A and B projects according to the coefficient of variation criterion?Calculate on paper.
When using present worth to evaluate the attractiveness of a single investment alternative, what value is the calculated PW compared to? a. 0.0b. MARR c. 1.0 d. WACC.
When choosing between two projects of different scales, which of the following methodologies is best employed? a. Probability index to rank projects b. Equivalent annuities method c. Replacement chain method d. IRR method